BEIJING, Nov. 14, 2012 /PRNewswire-FirstCall/ -- China Shen Zhou Mining & Resources, Inc. ("China Shen Zhou" or the "Company") (NYSE AMEX: SHZ), a Company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, lead, copper, and other nonferrous metals in China, today announced financial results for the third quarter and first nine months ended September 30, 2012.

Q3 2012 Financial Highlights

Revenues increased 5.2% year-over-year to $7.4 million;

Gross profit was $273,000;

Net loss attributable to the Company was $1.5 million, or $0.04 per basic and diluted share.

Third Quarter Financial Results

Third quarter net sales increased 5.2% year-over-year to approximately $7.4 million. The increase in net sales was mainly due to greater sales volume for fluorite powder and copper concentrate in the third quarter of 2012.

During the third quarter of 2012, sales volume of fluorite powder reached approximately 15,800 metric tons, an increase of approximately 7,600 metric tons from the same period of 2011. Copper concentrate powder sales volume increased to 139 metal tons from 13 metal tons in the same period of 2011.

Gross profit was $273,000 compared with $2.9 million in the third quarter of 2011. Decrease in gross profit was mainly due to lower selling price of fluorite powder. The fluorite powder sales price decreased 39% year-over-year to approximately $235 permetric ton in the third quarter of 2012.

Selling expenses were $57,000 compared with $24,000 in the third quarter 2011. Selling expenses as a percentage of total net sales was 0.8%, compared with 0.3% in the third quarter of 2011. The higher selling expenses were mainly due to the company's increased sales and marketing activities in an effort to win new customers.

General and administrative ("G&A") expenses in the third quarter were $2.7 million compared with $2.1 million in the same period of 2011. The increase in G&A expenses was due to the increased administrative expense associated with the newly acquired entities - Dongsheng Mining, Meilan Mining, and Qianshi Resources. G&A expenses as a percentage of total net sales increased was 35.6% compared with 28.6% in the third quarter of 2011.

Total operating expenses in the third quarter of 2012 were $1.8 million compared with $2.1 million in the third quarter of 2011. Total operating expenses as a percentage of total net sales decreased to 24.4% from 29.0% in the third quarter of 2011.

Operating loss for the quarter was $1.55 million compared with an operating income of $805,000 in the third quarter of 2011

Net loss attributable to the Company was $1.5 million, or loss of $0.04 per basic and diluted share, compared with a net income of $0.68 million, or income of $0.02 per basic and diluted share, in the 2011 third quarter.

Nine-Month Financial Results

Net revenues for the first nine months ended September 30, 2012 were approximately $16.5 million compared with $18.1 million during the same period in 2011. The decrease was due to the decline in sales price for fluorite powder. The fluorite powder sales price for the nine months ended September 30, 2012 was approximate $248 per metric ton, a $91 per metric ton or 27% decrease compared with the same period of 2011.

Gross profit for the first nine months ended September 30, 2012 was approximately $2.3 million compared with $7.9 million in the same period of 2011. Gross profit from the fluorite segment was approximately $2,416,000 and $7,483,000 for the first nine months ended September 30, 2012 and 2011, respectively. The decrease in gross profit for the fluorite segment was mainly due to the decline in sales price of fluorite powder. Gross profit margin was approximately 14% for the nine months ended September 30, 2012.

Net loss attributable to the Company for the first nine months ended September 30, 2012 was approximately $6.68 million compared to a net loss of $0.80 million for the same period in 2011. Net loss per basic and diluted share for the first nine months ended September 30, 2012 was $0.18 as compared with a net loss per basic and diluted share of $0.03 in the comparable period one year ago.

About China Shen Zhou Mining & Resources, Inc.

China Shen Zhou Mining & Resources, Inc., through its subsidiaries, is engaged in the exploration, development, mining, and processing of fluorite, barite and nonferrous metals such as zinc, lead and copper in China. The Company has the following principal areas of interest in China: (a)fluorite extraction and processing in the Sumochaganaobao region of Inner Mongolia; (b) fluorite and barite extraction and processing in the Wuchuan County of Guizhou province (c) fluorite and barite extraction and processing in the Yanhe County of Guizhou province; (d)fluorite extraction and processing in Jingde County, Anhui Province; (e) zinc/copper/lead processing in Wulatehouqi of Inner Mongolia; and (f) zinc/copper exploration, mining and processing in Xinjiang. For more information, please visit http://www.chinaszmg.com/.

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will", "believes", "expects" or similar expressions. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .

Convertible preferred stock ($0.001 par value; 10,000 shares and 0 share authorized as of September 30, 2012 and December 31, 2011, respectively; 1,666 shares and 0 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively)

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Common stock ($0.001 par value; 100,000,000 shares and 50,000,000 shares authorized as of September 30, 2012 and December 31, 2011, respectively; 44,686,758 shares and 32,285,973 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively)